Carrefour's Brazil unit investigated for corruption: filing

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FILE PHOTO: The Carrefour logo is pictured in a supermarket in Sao Paulo, Brazil November 9, 2017. REUTERS/Nacho Doce

SAO PAULO (Reuters) - The Brazilian unit of retailer Carrefour SA (CARR.PA) said on Thursday it is the target of a corruption probe into alleged payments related to the headquarters of its Brazilian brand Atacadao and a Sao Paulo store, which were operating without a license.

In a securities filing, the Brazil unit of the French retailer said it was being investigated by “relevant authorities” and that it will cooperate as well as conduct its own internal probe.

Shares of Carrefour Brasil (CRFB3.SA) were down 1.3% in morning trade in Sao Paulo.

The company said it was disclosing the investigation following media reports of “possible involvement of employees of the company in the payment of undue benefits to certain authorities” related to the operation of a store in Sao Paulo and the headquarters “without operating license.”

On Wednesday, Brazilian news site G1 published a story saying that Sao Paulo City Hall had closed a supermarket in the city that had been paying bribes to a public official to operate without a license. The report added the official had been arrested.

According to G1, prosecutors allege the headquarters had also been paying bribes to operate without a license.